120: Meb Faber – A Crash Course in Long-Term Investing—For Short-Term Traders
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The Importance of Taxes in Asset Allocation Portfolios
In taxable accounts, you really want to avoid them in many cases because they have to generate a massive amount of alpha just to break even with an index fund. And that's one of the biggest problems with a lot of hedge funds. If you went back to 1972 and I said, Aaron, I'm going to let you pick the single best asset allocation portfolio out of my book for the next, whatever, 35 years, how much would somebody pay for that? Billions? Absolutely. But here's the catch. You have to implement that portfolio, the average mutual fund fee today, 1.25%. That would have taken the best performing portfolio and made it far worse than the worst performing
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